The Biden-Harris Administration has unveiled a non-binding preliminary memorandum of terms with SK Hynix, facilitated by the US Department of Commerce, under the CHIPS and Science Act.
The agreement proposes up to US$450m (£353m) in federal incentives for SK Hynix to establish a high-bandwidth memory (HBM) advanced packaging fabrication and R&D facility in West Lafayette, Indiana.
This initiative is part of SK Hynix’s broader US$3.87bn (£3bn) investment in the US, which is expected to create approximately 1,000 new jobs.
SK Hynix’s facility at Purdue University Research Park will focus on producing next-generation HBM chips, essential for AI applications.
Through the proposed CHIPS investment in SK Hynix, a leading producer of HBM, the Biden-Harris Administration would take a meaningful step in advancing the security of the US AI supply chain.
This move is seen as a strategic effort to bolster the US semiconductor supply chain and reinforce national security.
Gina Raimondo, secretary of commerce, highlighted that this collaboration would secure America’s AI hardware supply chain, making the US the only nation with all five leading-edge semiconductor manufacturers operating domestically.
“President Biden and Vice President Harris are bringing the most advanced semiconductor manufacturing back to the United States,” added Arati Prabhakar, assistant to the president for science and technology and director of the White House Office of Science and Technology Policy.
“Advanced packaging is more and more critical for AI and other leading-edge systems, but it requires extremely precise manufacturing processes. With this incentive from the CHIPS and Science Act, SK hynix will make a major contribution to the complex computing systems that our nation relies on.
“At the same time, we are making the R&D investments to win the future, too.”
The proposed investment builds on the Administration’s commitment to advancing technological leadership and creating high-quality jobs.
Mass production is slated to begin in 2028, which is set to reinforce Indiana’s role as a research hub and advance US technological capabilities.
